In 2004 Caroline became the 8th municipality in New York State to purchase wind power to provide part of the municipal electrical needs; in 2005 it became the 2nd municipality to purchase wind power for 100% of its electricity use.
The east and south town lines are the border of Tioga County, New York.
New York State Route 79 crosses the town.
There were 1,161 households out of which 33.2% had children under the age of 18 living with them, 50.9% were married couples living together, 9.3% had a female householder with no husband present, and 34.7% were non-families. 26.8% of all households were made up of individuals and 7.8% had someone living alone who was 65 years of age or older. The average household size was 2.46 and the average family size was 2.99.
In the town the population was spread out with 27.1% under the age of 18, 6.6% from 18 to 24, 28.5% from 25 to 44, 27.9% from 45 to 64, and 9.9% who were 65 years of age or older. The median age was 38 years. For every 100 females there were 98.5 males. For every 100 females age 18 and over, there were 94.0 males.
The median income for a household in the town was $43,315, and the median income for a family was $51,983. Males had a median income of $35,375 versus $26,587 for females. The per capita income for the town was $21,531. About 6.9% of families and 7.4% of the population were below the poverty line, including 7.6% of those under age 18 and 3.1% of those age 65 or over. The majority of the residents of the Caroline area commute to the Ithaca area.
The Town of Caroline is served by 4 school districts Ithaca (city), New York, Dryden (village), New York,Newark Valley (village), New York and Candor (village), New York. Caroline Elementary School serves the northern and central portions of the town. Brooktondale Baptist School, sponsored by Brooktondale Baptist Church, closed around 2002, although the parish community continues.
Students in the Town of Caroline are dispersed into several school districts: Dryden, Ithaca, Candor, and Newark Valley. Two schools located within the town are the Caroline Elementary School of the Ithaca City School District and the Brooktondale Baptist School.